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Azerbaijan changes rules on spending of free balance of treasury account

30 December 2016 10:13 (UTC +04:00)

Azerbaijani parliament has today discussed the Law on Budget system at its last plenary meeting.

According to the Chairman of the Standing Commission on Economic Policy, Industry and Entrepreneurship of Azerbaijani Parliament Ziyad Samadzade, it’s offered to annul the article #6.6 of the Law on Budget system.

According to the draft law, in case the implementation of projects financed from the reserve funds specified requires a period longer than the current budget year, use of funds allocated from financing of those projects will not be carried on the next budget year.

Current article is as follows: In case the implementation of relevant socio-economic projects financed from the reserve funds specified in the provisions 6.2 and 6.3 of this Law requires a period longer than the current budget year, use of funds allocated from financing of those projects can be carried on the next budget year.

According to the article #6.2, the volume of the Reserve Fund of the state budget is defined not more than 5 percent of the incomes of the state budget, taking into account the actual execution of this Fund in the previous year. The article #6.3 says that the volume of the Reserve Fund of the President of the Republic of Azerbaijan is defined not more than 2 percent of the incomes of the state budget. The Fund's assets are allocated to events of great importance in the socio-economic life of the country.

The assets of the Reserve Fund of the President of the Republic of Azerbaijan cannot be used for holding elections and referendums in the country and promoting the activities of the President of the Republic of Azerbaijan.

Moreover, it’s offered to amend the Article #19.5 (Cash execution of the state budget).

According to the draft amendment, balances of all treasury accounts for the yearend are transferred to the unified treasury account of the state budget. These funds are directed to the funding of budget deficit and one in twelfth of state budget expenditures of the next year is directed to settlement of budget expenditures provided in the article #7 of this Law for the same year, and managed in the manner specified with the provision 19.2 this Law, the rest is transferred to the State Oil Fund of the Republic of Azerbaijan.

Current version is as follows: Balances of all treasury accounts for the yearend are transferred to the unified treasury account of the state budget (excluding targeted financings). A part of the funds nearly amounted to one in twelfth of state budget expenditures of the next year is directed to settlement of relevant budget expenditures and financing of the state budget deficit in the same year, and managed in the manner specified with the provision 19.2 this Law, the rest is transferred to the State Oil Fund of the Republic of Azerbaijan.

The draft amendment was adopted by voting.